Tesla cuts price for Model 3 cars by 10% to qualify for subsidie

BEIJING (Reuters) - U.S. electric vehicle maker Tesla Inc  said in Friday it has cut the starting price for China-made Model 3 sedans by 10% to qualify for subsidies in the world's biggest auto market.

Tesla, which started delivering cars from its $2 billion Shanghai car plant in December, said in a statement it has cut the starting price for its Standard Range Plus Model 3 sedans to 271,550 yuan ($38,463.17), after receiving 20,250 yuan per car as EV subsidies.

China had announced plans in 2015 to end subsidies for electric vehicles this year, but said in March it would extend them. However, it said the subsidies will apply only to passenger cars costing less than 300,000 yuan.